New philanthropists
Britain has seen the emergence of new philanthropists, influenced by American style philanthropy. New philanthropists are very wealthy and part of a growing number of extremely affluent individuals in the UK. They are often very engaged in their chosen causes; an extreme example of this is ‘venture philanthropy’ where individuals take a more hands-on approach to improving the performance of organisations using their business skills and expertise.
What are the implications?
- New philanthropists are seen by some as a solution to the sector's funding problems, yet they bring their own challenges, not least concerns over independence.
- The aims of new philanthropists may not match with organisation’s missions, potentially leading to mission drift.
- Support in the form of skills and expertise in addition to money can build the capacity of VCOs
- Business expertise and skills that will help address the imbalance of skills gaps and skills needs in the VCS.
- Increasing power of intermediaries who offer investment-style research and advice to wealthy philanthropists.
Moving forward
- How do you balance your mission with the aims of funders in order to secure funding?
- Do you have a good process for deciding whether or not a funding opportunity is too far off mission?
- Would your organisation benefit from a more hands-on relationship with funders and how might you handle any possible tensions?
Want to know more?
Published by: NCVO
Date: 2004
Format: Online
What is it? An article looking at the importance of targeting the mass affluent.
How useful is this? A practical article looking at how charities could be missing out by not effectively targeting the mass affluent who fall in between regular monthly donors and the wealthiest donors. The article, which includes a case study, looks at how to identify and interact with the mass affluent and how to help them decide how much to give and how. It also tackles the issue of how to demonstrate how donor’s money is spent.
Other comments:
Venture Philanthropy: The evolution of high engagement philanthropy in Europe
Published by: Oxford Said Business School – a school of Oxford University
Date: 2006
Format: PDF
What is it? This paper looks at the emerging venture philanthropy industry and examines its expansion in Europe.
How useful is this? This detailed paper outlines the roots and nature of venture philanthropy and looks at its potential to expand the social impact of Social Purpose Organisations particularly in Europe’s transitional countries. It also acknowledges the sceptics of venture philanthropy and outlines some of the challenges it faces. The paper includes case studies of venture philanthropy organisations.
The New Ecology of Social Benefit
Published by: The Future of Philanthropy – hosted byThe Monitor Group, a family of service firms
Date: 2005
Format: 4.84 MB
What is it? A guide looking at how current trends will affect how philanthropy is practiced and what it hopes to achieve.
How useful is this? Although a US based organisation, this provides a useful short (though very large to download) introduction to factors affecting philanthropy including: privatisation; communications; speed of connections; increase in donors and associated organisations; diversification of donors; and rising accountability and transparency standards.
There's much more to giving it away than simply handing it out
Published by: The Guardian – a left of centre newspaper
Date: 2006
Format: Web
What is it? An article exploring the new philanthropy and the advice business growing up around it.
How useful is this? A short look at the new culture of giving and the business of philanthropy. It includes comments on how new philanthropists want to engage with charities and what information they will require of them.
Other comments:
Discuss
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